Working capital requirements depends on the credit policy of …
A)the company
B)the suppliers
C)both a & b
D)none of the above

Question

Quizplus · Accepted Answer

Working capital requirements are influenced by the credit policies of both the company itself and its suppliers. The company's credit policy affects how much credit it extends to its customers, which in turn affects its receivables and cash flow. The suppliers' credit policy affects the credit terms extended to the company, impacting its payables and cash outflows.

Working Capital Requirements Depends on the Credit Policy of …